£400 and direct debits

[Belledan1]

Correct me if I am wrong but if the money is going straight to your fuel account , I wonder if the companies will automatically put the direct debit down as some may be in credit. I bet some will try not to. Makes we think sometimes if should pay quarterly and put so much away a month and hope it covers it. Also pay as you go will they be automatically credited on their meter.

Some companies may try not to I mean.

Do you have a variable DD or is it a set price each month?

Think it's set. Always seems about the same each month. Will check next month. Just a general question really not particularly for me.

Just hoping it will help people with disposable income.

I expect it will be different for each supplier.

I am assuming my supplier (BG) will reduce the monthly DD on the following statement (6 monthly I think) but I'm going to carry on paying what I pay now & have that in reserve, but they're not too keen on 'overpayments' so if it's too much hassle I'll just let them lower the DD until it's used up & they want to increase them again. I'd rather have a buffer, but it's not too important.

at times in the past (& possibly again in the fire!?!) it would have mattered a lot more & I would have phoned them too see how they were planning on dealing with it, but not for months yet as they probably won't have any answers for a while.

If it's set(sometimes called fixed but not to be confused with a fixed tariff) ask for a variable DD so you will get the benefit of lower payments when the rebate comes.
If you don't have a smart meter you will need to give meter readings.
variable you pay for what you've used and a set (fixed) you pay for 1/12 of your annual predicted use.

Thanks for explaining both. Very useful.

I have different providers for gas and electricity. My gas tends to be much higher in the winter as its my heating and hot water. I wonder if they will stick it on the electricity? I think they'll have a few logistical problems distributing it. I'm glad it's not fallen on the local authorities to administer again.

Yes I wonder once one they will do it on.

It will go on the electricity because almost everyone has mains electric but some don't have gas or use oil heating.

Good to know @JustTheOneSwan thank you. I know it will all get used eventually, but I don't use £400 of electricity in 6 months and my gas bill in the winter is far higher. I'm very happy to get it though, however it will work.

Chap being interviewed on Jeremy Vine yesterday said it would go ontoelectricity account. 6 separate payments of approx £65 each over 6 months. If your monthly payment is less than this, it will still be applied and will go onto your credit so you will still have the £400 applied, but may use it over 7, 8 or 9months etc

What happens if you are not on a DD and just pay quarterly ?

We are all being extra careful but some may not feel the benefit of the payment because it's not detailed enough.
If you are paying 1/12 based on last year's use no amount of cutting use of rebate will leave you with extra shopping money to help costs of living.

I don't think the 'credit' will last long!

Especially when prices rise in October

Surely it's less work administratively to give one payment rather than 6?
We have about £300 credit on our account and as we go into summer I expect that to increase although not by as much at it used to, with the £400 on top I think it should actually cover our increase in energy (obviously not the increase in everything else and the public sector pay freeze we've both had for the last ten years)

And actually the highest event bills are usually November to February so 3 months rather than six. We're fortunate in that we can cover it and cut back on luxuries if needed, but there are many many people living hand to mouth at best, so I'm not sure this delivery method is best

So what about if you top up on a meter ?

I paid my £150 council tax rebate straight into my energy account, then put my DD down by £12.50 per month (1/12th of £150). I'll do the same when the £400 appears.

SwelegantParty. I don't think this one goes to your bank account. Straight on to the fuel account.

I pay British Gas quarterly.

I would assume it will just be credited to your electric account. (I’ve read a few times, over the span of 6 months) so roughly £66 a month credited to your account.

I usually pay £100 once a month off my account anyway when I get paid. Then when the bill comes through quarterly pay anything remaining.

Threebutterflies. Was taking to a relative who has top up. She is hoping goes electric as is covered for cooking lights etc and then she had put extra on gas.

My quarterly duel fuel is just over 200 in winter and less in summer so I might have a bit of credit. I hope so because I'm struggling with things all going up.

Ah I didn’t realise it was going to the fuel company. I’m already £600 in credit which I hope will help in the winter.